Chapter 1 (1973-1977) | HISTORY | 50 Years of Nidec Group | History

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1973

INDEX

1973
1974
1975
1976
1977

1978-1988

1989-2000

2001-2005

2006-2009

2010-2014

2015-2018

2019-2023

1973

Jul.

Shigenobu Nagamori Founds Nippon Densan Kabushiki Kaisha (Nippon Densan Corporation).

Three founding colleagues

Aug.

Katsura Plant Is Established; The Manufacturing and Sales of Small Precision AC Motors Starts.

Small precision AC motors

1974

Jul.

Nidec Corporation (the “company”) receives an order from 3M Company (U.S.) for AC motors for cassette duplicators.

Aug.

The company increases its capital to 30 million yen with investment from Kyoto Enterprise Development, a venture capital company.

Oct.

The company opens a sales agent in the U.S.

Nov.

The company’s head office is relocated to the Furuhashi Building Annex in Mibubojo-cho (Omiya), Nakagyo-ku, Kyoto.

The company’s head office

1975

Jan.

The company opens sales agents in Asia and Europe.

Feb.

Kameoka Plant Opens in Kameoka, Kyoto Prefecture.

Kameoka Plant

Apr.

A full-scale production of brushless DC motors for fish finders starts.

Tokyo Branch Office opens in Suginami-ku, Tokyo.
The office is upgraded to Sales Office and relocated to Suginami-ku, Tokyo, in December 1978.

1976

Jan.

The production of AC motors for health care and medical equipment starts.

Apr.

Nidec America Corporation Is Established in St. Paul, Minnesota, U.S.

Nidec America Corporation

1977

Jul.

The production of brushless DC motors for gyrocompasses (for small aircrafts) starts.

Oct.

Sales reps in 36 locations throughout the U.S.

Go to Chapter 2 (1978-1988)

Shigenobu Nagamori Founds Nippon Densan Kabushiki Kaisha (Nippon Densan Corporation).

On July 23, 1973, Shigenobu Nagamori founded Nippon Densan Corporation (now Nidec Corporation) with a capital of 20 million yen to manufacture and sell small precision AC motors.
Nagamori was only 27 years old at the time. After graduating from the Polytechnic University as the top student in his year, he worked for TEAC Corporation (acting head of the Development Office), Yamashina Seiki Co., Ltd. (general manager of the Electronic Development Division), and Yasec Electronics Corporation (director and general manager of a business division), an affiliate of Yamashina Seiki. He had emerged as a prominent figure in the company, leading a staff of 250 people. However, he faced harsh criticism from others in the company due to his youth. He had always intended to go independent at some point, but in the face of such criticism, he decided to establish his own company sooner than planned.
Nippon Densan started out with a team of just four people: Mineyo Endo (27), Michio Tanabe (26), Hiroshi Kobe (24), and Nagamori himself, all of whom were graduates of the same university. The company headquarters was located in Nagamori’s home in the city of Kyoto’s Nishikyo-ku. As he embarked on this new venture, Nagamori set forth the company’s Policy and Three Management Principles, as well as the Three Essential Attitudes of “Passion, Enthusiasm, Tenacity,” “Working hard and smart,” and “Do it now; do it without hesitation; do it until completed” as the cornerstones of his management style.

Katsura Plant Is Established; The Manufacturing and Sales of Small Precision AC Motors Starts.

In August 1973, one month after the company was established, Nagamori rented the first floor of a two-story house on the bank of the Katsura River in Katsurakamino, Ukyo-ku (now Nishikyo-ku), Kyoto, and put up a sign bearing the name Nippon Densan Corporation on it, which became the Katsura Plant. This was at a time of great change, when the first oil crisis broke out and the Japanese economy was transitioning from high growth to low growth. The business environment was tough, but all the employees acted as sales personnel as well as technical staff. With handmade company resumes at hand, they accepted orders for sample production with the promise of making prototypes for any kind of motor. Whenever there was an inquiry, even if it was for a small quantity or a technically difficult requirement, they immediately responded, “Okay, we will make it right away.”

The sales attitude of those days, such as never saying no, shortening delivery time as much as possible, and visiting customers frequently, has been carried on to this day.

Kameoka Plant Opens in Kameoka, Kyoto Prefecture.

About a year after the company’s establishment, orders began to come in, but sales activities in Japan were not progressing as expected. Determined to overcome this adversity, Nagamori travelled to the U.S. by himself to cultivate new clients.

The prototypes he worked on all night were well received, and his efforts paid off when in 1974, the company received an order from 3M for AC motors. The initial order was for 1,000 units, and 3M said it would increase that number tenfold in a year. The Katsura Plant would not be able to cope with this volume. As such, the construction of a new factory became an urgent matter, and Nagamori scrambled to raise funds for the construction. However, no banks were willing to help. It was Mr. Kazuma Tateishi, founder of Tateishi Electric Manufacturing Company (now OMRON Corporation), who came to his rescue. With the encouragement of Mr. Tateishi, who had experienced similar hardships, the company was able to obtain a loan from Japan’s first venture capital firm.

In February 1975, construction was completed on the Kameoka Plant in Miyamae-cho, Kameoka, Kyoto Prefecture, with an area six times that of the Katsura Plant. This enabled the company to meet 3M’s requirements.

Nidec America Corporation Is Established in St. Paul, Minnesota, U.S.

In April 1976, Nidec established Nidec America Corporation, a local subsidiary, in St. Paul, Minnesota. At the time, exports of small precision AC motors for newly-developed magnetic tape copiers were increasing, and it was necessary to bolster sales and technical services in North and South America, as well as to strengthen ties with sales reps located throughout the United States.

The establishment of Nidec America enabled the company to establish a direct delivery system by securing inventory. This made it possible for the company to significantly shorten delivery times and reduce costs by exporting in bulk, and to expand its customer base, which had previously been biased toward large companies, to include mid-sized companies. It also led to the expansion and strengthening of the sales network in the U.S., including the increase of sales reps to nearly 20 locations. The establishment of a local subsidiary in the U.S. was a major turning point for the company, which had targeted overseas markets from early on.

Establishment of Nippon Densan Corporation

1973

1974

1975

1976

1977

Shigenobu Nagamori Founds Nippon Densan Kabushiki Kaisha (Nippon Densan Corporation).

Katsura Plant Is Established; The Manufacturing and Sales of Small Precision AC Motors Starts.

Kameoka Plant Opens in Kameoka, Kyoto Prefecture.

Nidec America Corporation Is Established in St. Paul, Minnesota, U.S.

Establishment of
Nippon Densan Corporation